H2O PA – Flood Control Projects

The H2O PA Flood Control Program is administered by the Pennsylvania Department of Community and Economic Development (DCED) under the authority of the Commonwealth Financing Authority (CFA). It was established under the H2O PA Act of July 9, 2008, to provide financial assistance in the form of grants for flood control projects across the Commonwealth of Pennsylvania. The initiative specifically supports the construction, improvement, repair, or rehabilitation of flood control infrastructure to mitigate the risks and damages caused by severe flooding events. The program addresses both structural and non-structural methods to reduce flood hazards and improve the safety and resilience of Pennsylvania communities. This program is intended for a narrow group of public-sector applicants. Eligible entities include the Commonwealth of Pennsylvania itself, independent agencies, municipalities (such as cities, counties, townships, and boroughs), and municipal authorities created under the Municipal Authorities Act. Projects must demonstrate a clearly defined flood problem within the community, and applicants must show how the project’s benefits in terms of damage reduction justify the associated costs. Eligible project types include channel improvements, detention dams, levees, floodwalls, and non-structural flood control solutions, either alone or in combination. Funding may also be used for design and engineering costs, security installations, permit fees, inspection costs, bonding and insurance, limited administrative costs, and certain construction contingencies. To be eligible for consideration, project costs must total at least $500,000, with awards not exceeding $20,000,000. Additionally, the program imposes specific financial participation requirements on applicants, such as providing rights-of-way, managing utility relocations, and committing to long-term maintenance responsibilities. The use of H2O PA funds is strictly regulated: design and engineering expenses are capped at 10% of the total award, and administrative expenses cannot exceed 2%. Certain costs, such as pre-approval expenses, lobbying, and debt refinancing, are explicitly ineligible. Applicants must apply through the DCED’s Electronic Single Application for Assistance platform and upload the required supplemental documentation. These include a certified engineering feasibility study, detailed cost estimates, construction drawings, technical specifications, land acquisition documents, permits, proof of funding commitments, planning certification letters, a board resolution, and notifications to relevant local governments. A $100 non-refundable application fee is also required at the time of submission. Physical copies of the application and all attachments must be mailed to the DCED’s Site Development Office for processing and review. Evaluation of submitted applications is conducted by the CFA in collaboration with the DCED and the Pennsylvania Department of Environmental Protection. Proposals are assessed based on the severity of flood risk, cost-effectiveness, number of beneficiaries, readiness for implementation, and compliance with environmental and land use regulations. The applicant's financial capacity and planning preparedness are also weighed. Grants are awarded competitively and not all applicants are guaranteed funding. Approved applicants receive an electronic commitment letter and grant agreement, which must be signed and returned within 45 days. Questions about the program may be directed to the DCED Site Development Office via email at [email protected] or by phone at (717) 787-6245. Applications are not accepted on a rolling basis, and commencement of project activities prior to official approval renders the project ineligible for reimbursement. There is no specified submission deadline in the most recent guidelines, and there is no evidence of a recurring submission cycle, so prospective applicants should check the DCED website for updates regarding the next funding round.

Projects must not start before approval. Ensure all permits and planning documents are secured.